diff --git a/addons/go.mod b/addons/go.mod
index 70139e9d04..515433aa2f 100644
--- a/addons/go.mod
+++ b/addons/go.mod
@@ -17,7 +17,7 @@ require (
 	github.com/pkg/errors v0.9.1
 	github.com/vmware-tanzu/carvel-kapp-controller v0.35.0
 	github.com/vmware-tanzu/carvel-secretgen-controller v0.5.0
-	github.com/vmware-tanzu/carvel-vendir v0.26.0
+	github.com/vmware-tanzu/carvel-vendir v0.32.2
 	github.com/vmware-tanzu/tanzu-framework/apis/addonconfigs v0.0.0-20220907220230-c1137d344dd3
 	github.com/vmware-tanzu/tanzu-framework/apis/run v0.0.0-20220907220230-c1137d344dd3
 	github.com/vmware-tanzu/vm-operator-api v0.1.4-0.20211202185235-43eb44c09ecd
diff --git a/addons/go.sum b/addons/go.sum
index f3278b1251..bd543752e0 100644
--- a/addons/go.sum
+++ b/addons/go.sum
@@ -881,8 +881,8 @@ github.com/vmware-tanzu/carvel-kapp-controller v0.35.0 h1:zgWNumjhN+0CCiq1Wo4lVT
 github.com/vmware-tanzu/carvel-kapp-controller v0.35.0/go.mod h1:Hldrv7kPAD3THS1yUYZPFIaHmPE0ENO0ljzbJrpftiE=
 github.com/vmware-tanzu/carvel-secretgen-controller v0.5.0 h1:3mSDyzhf52Y0jdvHrhJUf4Sk97CILBOkQt/WUaD8G/8=
 github.com/vmware-tanzu/carvel-secretgen-controller v0.5.0/go.mod h1:UW9xzccG6vjNoq2emVderTX11epILNyxtmGxFupRsHc=
-github.com/vmware-tanzu/carvel-vendir v0.26.0 h1:Q98tPnH9WUAWE2vJSAP0lsHGsfwGjfW2y+JUOEiJ/Yk=
-github.com/vmware-tanzu/carvel-vendir v0.26.0/go.mod h1:JcuNNVONFbZTbm/GjtGiWUfFrt17YBQzeGT9+gY1+yY=
+github.com/vmware-tanzu/carvel-vendir v0.32.2 h1:50FSQYAadlFx9V6QN5oln1OPkDL5Re+vlr89h9ODpG4=
+github.com/vmware-tanzu/carvel-vendir v0.32.2/go.mod h1:L+zp/OUkJgmLy2fAYtBDoXnchbfnVnryXCzElYq7toc=
 github.com/vmware-tanzu/net-operator-api v0.0.0-20210401185409-b0dc6c297707 h1:2onys8tWlQh7DFiOz6+68AwJdW9EBOEv6RTKzwh1x7A=
 github.com/vmware-tanzu/net-operator-api v0.0.0-20210401185409-b0dc6c297707/go.mod h1:pDB0pUiFYufuP3lUkQX9fZ67PYnKvqBpDcJN3mSrw5U=
 github.com/vmware-tanzu/vm-operator-api v0.1.4-0.20211202185235-43eb44c09ecd h1:BXz4aAPzRAYD8x8LEhjEsmvTj9mCvesnr4ApT1Ay4YY=